
PJM’s New Capacity Cap and Collar for 2026/27 and 2027/28: Navigating Higher Energy Prices for the Next 3 Years
Commercial and industrial energy users across the PJM Interconnection territory are facing a critical moment. Following an unprecedented capacity price spike for the 2025/2026 delivery year, PJM has implemented a new pricing structure, known as the “cap and collar”, to bring some predictability to capacity prices for the next two delivery years.